Mumbai: Court Restrains Housing Society From Charging Maintenance On Per-Square-Foot Basis, Orders Per-Unit Billing

Mumbai: In a significant ruling for property owners, Mumbai’s Co-operative Court has restrained a housing society from levying maintenance charges on a per-square-foot basis. The court directed the society to follow the legally mandated per-unit billing method until a final decision is reached in the dispute.

The order was passed recently while hearing a plea by advocate Abha Singh challenging her society, Trade World Premises Co-operative Housing Society Limited (CHSL), decision to charge her maintenance on per-square-foot basis.

“The opponent society, its managing committee members, servants, agents acting on their behalf are hereby restrained from levying and collecting bills from the disputant on per square feet basis till the decision of the present dispute. The opponent society can issue and collect bills on per unit / flat basis,” judge SK Devkar said recently.

Singh’s advocate Aditya Pratap submitted that the housing society has failed to comply with a directive issued by the Government of Maharashtra under Section 79 of the Maharashtra Co-operative Societies Act, 1860, which mandates that maintenance charges must be equally divided among all flats, regardless of their size. This directive was upheld by the Bombay High Court, which stated there was “no rational basis” for charging larger flats more for shared services.

Pratap further argued that the society’s billing practice was inequitable, forcing owners of larger flats to pay disproportionately for common services such as security, electricity, and maintenance of shared areas. The court agreed, noting the lack of justification for the society’s billing method.

The court, in its order noted that the housing society, though appeared, failed to file a reply and written statement. As the society “failed to argue”, the judge proceeded with the application without argument on behalf of opponent society. “Therefore, adverse inference can be drawn against the opponent society,” the judge noted.

In the detailed order, the Judge said that the society failed to follow the government directive dated April 29, 2000, which explicitly requires maintenance charges to be equally divided among all flats and commercial spaces in registered co-operative housing societies.

“I have minutely gone through the said bills. Prima-facie it appears that, the maintenance charges mentioned in the bills varies from month to month without any reason mentioned therein. Therefore, it appears that the opponent society is levying maintenance charges on per square feet basis,” the judge noted."

The court also relied on Bombay HC’s order which held that societies cannot levy maintenance or service charges based on the size of flats.